VAT is now mandatory for your businesses in UAE if your supplies and imports exceed the threshold of AED 375,000.
VAT is almost here in GCC and that means that the impact on the businesses will be significant. Our worldwide knowledge and experiences have made us realise that education, planning and training on VAT are the key factors to guarantee a successful and fruitful VAT implementation. The major efforts should be mainly on ERP system and staff training. Business process readiness and communication is also very essential for an organization.
Value Added Tax (VAT)
The tax that is calculated on your supply of services or goods is called VAT. It is meant to be paid by the purchaser of the services or goods at every stage of the supply chain process.
What needs to be done next ???
It has been announced and revealed by the UAE government that the VAT will be effective from the 1st of January 2018 in UAE. The rate is expected to be 5% on an average. Therefore, the companies are required to register before it’s too late. Registration of VAT can be made online as well. VAT returns should be paid to the governments but completing and submitting the VAT retunes on a consistent basis. Three months’ time will be provided for the VAT return fillings by the UAE Ministry of Finance, therefore, reclaims and payments process will be for max organizations.
Want to learn more about VAT? Please reach out to one of the Dynamics Stream Consultants.